*hire a building inspector and have the property inspected by a property manager
*Utilise a buyers agent who can complete the due diligence on your behalf

Don’t buy sight unseen of course, but it’s not that difficult to have someone work on your behalf.

Andrew Allen: http://www.allenrealestate.com.au/ – he can be booked out quite a bit so best to check if he’s available

Property Zest: http://www.propertyzest.com.au/

I’ve had clients use both with positive experiences.

If the land already has its titles released and can be purchase immediately and there’s no requirement to go through the builder, that’s not OTP. It’s just a land developer showing a house available which can be built on site, many builders do this to drum up business as advertising.

I’ll be there – haven’t been to Public before. :)

Depends what you mean by ‘poor credit rating’. Is it defaults, previous bankruptcy, poor repayment history on current loan?

Very deal specific, so best to have a chat with a broker who can give you advice relevent to your situation.

Be careful with val shopping too – it’s not just about getting the highest valuation, but ensuring the lender you utilise for your PPOR is both flexible for investors in allowing equity releases now and in the future.

A good strategic view of the long term will see you paying down your PPOR, freeing up additional funds to continue releasing as…[Read more]

Regional, Hobart and the outer suburbs of Adelaide are the main picking grounds for CF+ properties in Australia. There have occasionally been properties which have been CF+ when Brisbane bottomed in prices, but that’s changed in the last two years.

Areas like Elizabeth SA, Wagga Wagga NSW, Orange NSW you’ll find reasonable cash flow.

Keep in…[Read more]

David Traeger (@d.t http://www.dtproperty.com.au) on this forums runs a property management company here in Adelaide – I know he looks after a number of people here. :) He’s got a pretty substantial portfolio himself, so knows a thing or two about what it’s like to be an investor, rather than being shunted around 18 yr old junior assistants!

The cost being paying stamp duty and any other government charges all over again, and if you’re more than 80% LVR LMI all over again.

Great way to burn 10’s of thousands – for what benefit?

A lot of people like the sound of having things in trusts, but generally cannot articulate what the actual benefits for them are vs the costs. Trusts can be…[Read more]

Depending on the lender they may allow you to go IO just by filling in a form – however many will instead require a full application.

Equity in your PPOR won’t be relevent at all, you still need a sufficient income to be able to borrow.

How quickly do you think the banks would be on the news if they lent money to people without any income?

Generally the vendors aren’t looking for creative – they will want more money.

So you realistically need to remember that the vendors and agent will know an eager buying party = will pay more. If not they’ll string you along until someone else will.

I like Jacqui’s idea.

And after you’ve submitted them, walk away. Don’t keep going back otherwise the agent/vendor knows they can just keep milking you.

Pay the PPOR loan out and setup a new loan releasing equity to be used for investment. You then have no personal debt, and the equity released if you used for investment use will be tax deductible. Win win.

Whether a trust is even worth it in your situation is dependent on your specific situation – for the most part many people who use them dont…[Read more]

All lenders have an all-monies clause – but cross collateralising is like fuel to the fire, by giving them the ability to actively choose what you can do with the properties without a lot less intervention (not requiring court orders to enforce, legal team etc).

Keep in mind, by buying properties together you’re both going to have drastically reduced borrowing capacities if you ever borrow separately for anything – including a personal place of residence (your own home).

Trusts have a place, especially if you work in a highly litigious industry – otherwise it can be overkill, leaving you additional costs…[Read more]

You’re only bet is to call up the banks to try get them to reduce the rate. You won’t be able to refinance elsewhere whilst unemployed.

The vast majority of lenders accept 80% of the rental income, some lenders such as CBA and NAB will have yield caps.

That’s just one tiny factor compared to a multiple other layers which will affect your borrowing capacity – have a chat with an investment focussed mortgage broker who can weigh all the factors up to find the best lending options.

Structure your loans to enable the best flexibility and tax – not to artificially manipulate the ‘cash flow’. Revenue minus expenditure, the rest is just fluff if structured correctly.

I actually wrote an article about this topic recently, it might be of assistance for you: http://www.precisionfunding.com.au/interest-only-vs-principal-and-interest/